2003 - KNM Steel Sdn Bhd

KNM GROUP BERHAD (521348-H)NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2003Unrecognised financial instrumentsThe contracted amount and fair value of the financial instruments not recognised in the balance sheet of theGroup as at 31 December 2003 is:2003 2003Contracted FairAmount ValueRM’000 RM’000Forward foreign exchange contracts 10,051 10,10823. SIGNIFICANT EVENTS DURING THE YEARKNM Group Berhad (“KNM”) underwent the following restructuring exercise upon obtaining the approval of therelevant authorities and shareholders.(i)Acquisition of KNM Process Systems Sdn. Bhd. (“KNMPS”)On 2 May 2003, the Company acquired the entire issued and paid-up share capital of KNMPS, comprising3,100,000 ordinary shares of RM1.00 each, for a purchase consideration of RM34,186,350 which wassatisfied by the issuance of 28,253,182 new ordinary shares of RM1.00 each of the Company at an issueprice of RM1.21 per ordinary share.(ii)Acquisition of KNM International Sdn. Bhd. (“KNMI”)On 2 June 2003, the Company acquired the entire issued and paid-up share capital of KNMI fromKNMPS, comprising 500,002 ordinary shares of RM1.00 each for cash consideration of RM500,002from KNMPS.(iii)Rights issue to the existing shareholders of KNMRights issue of 4,666,816 new ordinary shares of RM1.00 each for cash at an issue price of RM1.00 perrights issue on 18 June 2003.(iv)Placement of sharesPlacement of 4,400,000 new ordinary shares of RM1.00 each for cash at an issue price of RM1.48 perordinary share.(v)Public issuePublic issue of 6,680,000 new ordinary shares of RM1.00 each for cash to the Malaysian public at anissue price of RM1.48 per ordinary share.2003 ANNUAL REPORT53